if faith attends colleg she will pay 50000 for tuition15000

if faith attends colleg, she will pay $50,000 for tuition,$15,000 for room and board, and$5,000 for books.if ahe spends the 4 years working rather than gloing to college, she will pay $16,000 for room and board.based on this information, Faith\'s economic cost of attending college is $67,000. if over the four years she would earn

Solution

Explicit cost of attending college = $(50,000 + 15,000 + 5,000) = $70,000

Implicit cost of working instead = $16,000

Economic cost of attending college = $(70,000 - 16,000) = $54,000

If earning from job be M, then

Economic cost of attending college = $54,000 + M

$67,000 = $54,000 + M

M = $(67,000 - 54,000) = $13,000